First step taken for special counsel for '5-billion-won club'

The 5-billion-won club refers to six people accused of receiving at least 5 billion won in bribes from the Daejang-dong developers in return for helping get the project off the ground. .

Members of the subcommittee for the Legislation and Judiciary Committee holds a meeting in launching an independent counsel, who would investigate the so-called ″5 billion won club″ at the National Assembly on Tuesday. All three of the People Power Party representatives walked off in protest.[YONHAP]

The Democratic Party (DP) took its first step in launching an independent counsel to investigate the so-called “5-billion-won ($3.8 million) club” related to the Daejang-dong development scandal.

On Tuesday, all five DP members on a subcommittee of the Legislation and Judiciary Committe, including Kim Nam-kuk and Lee Tahney, approved special legislation sponsored by Justice Party lawmaker Kang Eun-mi.

The special bill calls for parties unable to form parliamentary negotiating blocs — that is, smaller parties with less than 20 representatives in the National Assembly — to choose the independent counsel.

While the Justice Party has six seats, the two major parties — DP and PPP (People Power Party) — have 169 and 115 seats, respectively.

All three PPP representatives on the subcommittee left the room in protest.

“Whenever the DP has an objective, they steamroll,” PPP Rep. Yoo Sang-bum said. “And they are doing it again, which is seriously regretful.”

He said the DP's attempt to railroad the independent counsel raises serious questions about the party’s motives.

The PPP claims that the DP’s push for the independent counsel, despite the ongoing investigation by prosecutors, aims to distract from the legal troubles DP leader Lee Jae-myung faces in connection to the Daejang-dong scandal.

The controversial Daejang-dong development scheme was led by former journalist Kim Man-bae, who had strong connections with high profile judges as well as former prosecutors and politicians.

The project was green lit when DP Chairman Lee was the mayor of Seongnam city.

Lee has been accused of using the scheme to create a political slush fund used in the primary for the 2022 presidential election.

Lee has remained silent on the scandal, having recently been indicted in connection with the case as well as bribery allegations regarding corporate sponsorships for Seongnam's football club.

The DP argues that the PPP is playing politics over the independent counsel, especially since the PPP had earlier expressed approval for it.

“The reason the subcommittee convened today is because the PPP and the Justice Party agreed to the special counsel legislation on the 5-billion-won club,” DP lawmaker Ki Dong-min said.

Noting that the subcommittee is the first step, Ki said he hopes the legislation will be approved by the National Assembly soon.

The 5-billion-won club refers to six people accused of receiving at least 5 billion won in bribes from the Daejang-dong developers in return for helping get the project off the ground.

Alleged members include former independent counsel Park Young-soo, who indicted President Park Geun-hye after she was impeached, as well as Kwon Soon-il, a former Supreme Court justice who played a key role in acquitting Lee Jae-myung of lying during his campaign for Gyeonggi governor, and Kwak Sang-do, a former People Power Party lawmaker.

Kwak was the first to stand trial after being indicted in February 2022. He was acquitted of earlier this year of taking a bribe through his son, ostensibly as a severance payment and performance bonus.

While the court acknowledged that the 5 billion won paid to Kwak’s son was excessive, it found little evidence that the payment was a quid pro quo.

The prosecutor has appealed the decision, pledging to strengthen his case.

It also recently raided the office of Park Young-soo.

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]